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I don't know what the terms of use, and the laws of various countries, say in this matter; I don't think there should be any problem with lending your physical ereader to someone, though of course it would typically make it possible for them to copy the contents, and it might very well be something the terms of use of this or that ebook seller would like to forbid. Oh well.
Morally, ethically? Book sharing should be encouraged, of course - as long as we're talking about lending your reader, or even a copy of an ebook you liked and believe the other person is likely to enjoy. Somehow one must draw the line somewhere; some weeks ago I declined when my nephew's girlfriend asked me if I wanted access to her collection of some 20.000 or so ebooks (not sure what the figure was; it was way more than I'll ever read in my lifetime).
(In the area around my home there are a number of "book-sharing boxes" where one is invited to leave some of their books, and anyone can pick them up for free. The one closest always has between 10 and 20 books in it - it looks like not many are really things I'd be much interested in, but it's clearly not "trash only". I don't know how one could implement a digital equivalent, though.)
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